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IAI Actuarial Core Principles · Business Management · Sources of Indian law and valid contracts

Priya, an actuary, is asked by her employer to explain which courts have primary authority over a criminal matter involving alleged fraud by a company director. She notes that in the Indian hierarchy, trial of serious offences ordinarily begins in which forum?

Trial of such an offence ordinarily begins in a subordinate criminal court, either a Magistrate's court or a Sessions Court depending on gravity, with appeals later going to the High Court and the Supreme Court. The Supreme Court is not a normal court of first instance.

  1. AA subordinate criminal court, such as a Magistrate's court or Sessions Court depending on the gravity of the offenceCorrect
  2. BThe Supreme Court, as the court of first instance for all fraud
  3. CA High Court sitting as an appellate court only after the Supreme Court has ruled
  4. DThe Lok Sabha, through a parliamentary committee
  5. A civil court, because fraud is always a civil wrong

Explanation

Criminal trials normally begin in subordinate courts: Magistrates for lesser offences and Sessions Courts for graver ones. Appeals then move to the High Court and Supreme Court. The Supreme Court is not the usual trial court, and fraud can be a criminal offence, not only a civil wrong.

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